Summary
Manhattan Associates reported fourth quarter revenue of $270.4 million, up 5.7% from the prior-year quarter. GAAP operating income rose 10.4% to $67.0 million. Net income increased 8.2% to $51.95 million. Operating margin was 24.8%, up 1.1 percentage points. For the full year, revenue reached $1.08 billion, up 3.7%. Full-year operating income was $279.8 million, up 7.0%. Net income was $219.95 million, up 0.7%. Diluted earnings per share for the full year was $3.60, up $0.09 or 2.6%. Full-year operating margin was 25.9%, up 0.8 percentage points. The company said cloud subscription revenue growth and RPO growth are its leading indicators. Cloud revenue now represents about 96% of total software revenue. The company generated 65% of total revenue in the United States in 2025.
Cash generation was strong. Operating cash flow for the fourth quarter was $147.0 million, up 40.4%. Full-year operating cash flow was $389.5 million, up 32.0%. Capital expenditures were $4.66 million in the quarter, up 48.9%, and $15.46 million for the full year, up 78.2%. Current deferred revenue was $337.0 million, up 21.3% from the prior-year quarter. Remaining performance obligations, or RPO, reached $2.20 billion, up 22.2%. Over 98% of RPO represents cloud native subscriptions with non-cancelable terms greater than one year. The company repurchased 415,925 shares for $75.0 million in the fourth quarter and 1,451,019 shares for $274.5 million in 2025. In January 2026, the board replenished the share repurchase authority to $100.0 million. Days sales outstanding was 73 days at December 31, 2025. The company ended the year with no debt.
Non-GAAP results showed adjusted operating income of $91.4 million for the fourth quarter, compared with $90.3 million a year earlier. Adjusted diluted earnings per share was $1.21, compared with $1.17. For the full year, adjusted operating income was $387.1 million, compared with $361.8 million. Full-year adjusted diluted earnings per share was $5.06, compared with $4.72. Management provided full-year 2026 guidance for total revenue growth of 5% to 7%. It guided adjusted operating margin to 34.5% to 35.0% and adjusted diluted earnings per share to $5.04 to $5.20. The company said it remains cautious about the global economy. It noted that sales cycles for large cloud subscriptions could be extended. It also said global geopolitical and economic volatility likely will continue to shape enterprise software buying decisions.
Risks include macro-economic uncertainty, competitive and pricing pressures, and global instability, including the wars in Ukraine and the Middle East. The company also flagged risks related to generative and agentic artificial intelligence. In January 2025, Manhattan Associates eliminated about 100 positions to align services capacity with customer demand. The effective tax rate rose to 23.1% in 2025 from 18.2% in 2024, which weighed on net income growth. The company said solid demand for cloud solutions drove its full-year results. It remains committed to investing in innovation and expanding its Manhattan Active suite. The company employed approximately 4,370 employees worldwide at December 31, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $270.4M | $275.8M | -2.0% | $255.8M | +5.7% |
| Gross profit | $148.6M | $156.0M | -4.7% | $142.8M | +4.1% |
| Gross margin | 55.0% | 56.6% | -1.6 pp | 55.8% | -0.9 pp |
| Research & development | $38.5M | $36.4M | +6.0% | $33.0M | +16.8% |
| Sales & marketing | $22.1M | $18.1M | +22.3% | $20.3M | +8.7% |
| General & administrative | $19.5M | $24.1M | -19.1% | $27.2M | -28.3% |
| Total operating expenses | $203.4M | $200.0M | +1.7% | $195.1M | +4.2% |
| Operating income (loss) | $67.0M | $75.8M | -11.6% | $60.7M | +10.4% |
| Operating margin | 24.8% | 27.5% | -2.7 pp | 23.7% | +1.1 pp |
| Net income (loss) | $52.0M | $58.6M | -11.4% | $48.0M | +8.2% |
| Net margin | 19.2% | 21.3% | -2.1 pp | 18.8% | +0.4 pp |
| Diluted EPS | $0.85 | $0.96 | -$0.11 | $0.77 | +$0.08 |
Risks
The filing materially expands AI risk, noting use of third-party generative and agentic AI tools for product features and internal operations may create IP, security, quality, and regulatory exposure, including under the EU AI Act and Colorado AI Act.
MD&A states current sales cycles for large cloud subscriptions in target markets could be extended, and risk factors note sales cycles typically extend from nine to twelve months and may take up to several years, affecting the timing and predictability of revenue.
MD&A says services revenue decreased $22.5 million in 2025 compared to 2024, primarily due to Americas customer budgetary constraints that shifted services work to future periods, and the company eliminated about 100 positions in January 2025 due to short-term macro-economic uncertainty.
The filing states the largest market, retail, is experiencing significant business disruption and transformation driven by digital commerce, and traditional retailers could delay purchase decisions, with extended sales cycles for large cloud subscriptions potentially having a material adverse effect on revenues.
The filing states future revenue depends on continuing cloud subscription sales, which in turn drive professional services; cloud subscriptions were 38% of total 2025 revenue and 96% of total software revenue, so discontinuation or scope reductions could significantly decrease revenue.
The filing discloses two putative securities class action lawsuits filed in February and April 2025 and a shareholder derivative lawsuit filed on September 22, 2025, and states it cannot predict the ultimate timing or outcome or reasonably estimate possible losses.
The filing lists competitors including Oracle, SAP, Infor, Blue Yonder/Panasonic, E2Open, Korber, SAS Institute, IBM Sterling Commerce, Relex, Aptos, and Salesforce, and states increased competition could result in price reductions, fewer customer orders, reduced earnings and margins, and loss of market share.
MD&A reports the effective income tax rate increased to 23.1% in 2025 from 18.2% in 2024, mainly due to a decrease in excess tax benefits on restricted stock vesting, an increase in executive compensation limitations, and an increase in tax contingency reserves.
The filing highlights competition for technical and sales personnel and notes G&A increased in 2025 partly due to a $3.0 million signing bonus, $0.8 million in recruiting fees, and $6.5 million of stock compensation related to hiring the new chief executive officer.
SaaS KPIs
All quarters →Remaining Performance Obligations
RPO Growth (YoY)
Summary, forecast, risks and KPIs are extracted from MANHATTAN ASSOCIATES INC's SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.